UR publishes NI Water 2010-2013 Cost and Performance Report

Today the Utility Regulator publishes our latest Cost and Performance report for NI Water.  This report covers the PC10 Price Control period 2010-13, representing NI Water’s first regulatory price control.  This Cost and Performance report outlines our independent assessment of how the company performed over the period, against the efficiency targets and key performance indicators outlined in the PC10 Final Determination and Monitoring Plan.  Where appropriate, we have also compared NI Water’s performance with companies in England, Scotland and Wales. 

Our key findings are as follows:

-  NI Water has reduced its operating running costs in 2012-13 prices from £241 million at the start of PC10 to £192 million by the end.
 
-  NI Water has improved its Overall Performance Assessment score from 121 at the start of PC10 to 198 at the end - outperforming its target of 181.
 
-  NI Water has outperformed its PC10 efficiency targets and continues to lower the relative gap to the benchmark companies.

-  During this timeframe NI Water has faced some significant challenges which include a number of extreme weather events, the freeze/thaw of 2010/11, flooding in June 2012 and the snowfall of March 2013.  A significant lesson from the freeze/thaw event was the need for an enhanced focus on communicating effectively with consumers.
 
-  Following the Freeze/Thaw event the Utility Regulator reported to the Executive on NI Water’s performance and recommended 56 actions to reduce the impact of similar events in the future.  NI Water has been addressing these recommendations and has completed all but two short-term actions with longer-term actions ongoing. 

-  NI Water invested £517 million in capital investment (£61 million less than planned).  However, overall we consider NI Water to have delivered its capital targets.

We are pleased to report that, in overall terms, NI Water has successfully delivered its first regulatory price control, reducing prices and improving services to consumers, as assessed against the PC10 determination and Monitoring Plan for the period.